NEW YORK - Credit default swaps on Textron Inc's Textron Financial Corp tightened sharply on Monday after Textron announced tender offers on up to $650 million in debt.

Five-year credit default swaps on Textron Financial tightened by 85 basis points to 263 basis points, according to Markit Intraday.

Textron is also selling $600 million new notes to fund the tender offer, effectively extending maturities and giving it more time to pay off its debt. The notes offering was increased from an originally planned $500 million, according to IFR, a Thomson Reuters Service. (Reporting by Dena Aubin)